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Houston Faces New Flash Flood Warning; Iraqi Forces Move to Retake Territory from ISIS; Money Trail Could Be Key to D.C. Mansion Murder Case. Aired 10-10:30a ET

Aired May 27, 2015 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[10:00:01] CAROL COSTELLO, CNN ANCHOR: Or do they have one massive popping?

CHAD MYERS, AMS METEOROLOGIST: They do pop.

COSTELLO: They do pop.

MYERS: It feels like you're coming up from about a 60-foot dive to get up to the water, and you're swallowing, swallowing, swallowing all the way up here. Absolutely. But in that elevator, there is a video screen, actually three of them, and you see New York City being built from 1500s when the Indians were here to all the way up and into 1600s, 1700s, and now where we are now. It's a great video. It's 47 seconds. It's worth the 32 bucks to get in just to watch that. Beautiful exhibit.

COSTELLO: Well, thank you for sharing, Chad. I appreciate it.

The next hour of CNN NEWSROOM starts now.

(BEGIN VIDEOTAPE)

COSTELLO: Happening now in the NEWSROOM, a desperate search for a mother and her two young children swept away in deadly flooding.

UNIDENTIFIED FEMALE: Tell mom and dad that I love them. I love you. And pray.

COSTELLO: We're taking you above Texas to survey the scope of the destruction.

Also, soccer scandal. Accusations of corruption, bribery, kickbacks totaling more than $100 million. We go inside the FBI investigation and what it means for future World Cups.

Plus the IRS hacked by the cyber mafia. Crooks stealing the financial records of more than 100,000 people claiming thousands of tax refunds. Is yours one of them?

Let's talk. Live in the CNN NEWSROOM.

(END VIDEOTAPE)

COSTELLO: And good morning. I'm Carol Costello. Thank you so much for joining me. Right now concerns and danger are growing just south of Dallas. This is a live image of a dam that could give way at any time. As you can see water is flowing over the top but the concern is about structural damage taking place beneath the water line. The threat of collapse has forced the evacuation of about 25 homes downstream.

Houston's flood-weary residents are watching the skies, too, and the clock. Just minutes from now a flash flood warning is due to expire along with the threat of another three inches of rain.

Here are the latest numbers and they are grim. Eighteen people confirmed dead. At least 13 missing. And with each hour hope fades for those who vanished in the chaos.

Let's begin our coverage in one of Houston's hardest hit neighborhoods. CNN's Rosa Flores is there.

Good morning.

ROSA FLORES, CNN CORRESPONDENT: Good morning, Carol. Definitely the worry mounting here in Houston. Like you mentioned, Harris County in a flash flood warning. Now that means, according to officials, that this area could see one to three inches of rain in the next few hours.

Let me show you why that's an issue here. This city is the bayou city. There are bayous like this running through the city and eventually emptying up into the Gulf of Mexico. The water here has been rising steadily since we got here a few hours ago.

Now here is the worry. The water levels change very quickly. Just 24 hours ago -- let me show you something. I stand probably just shy of six feet. Take a look at where the debris is. This is debris from about 24 hours ago. That's where the water level was.

Now imagine the power of this water, the surge, and then look just over the banks of this bayou. That's where homes are. About 200 feet from where we're standing families living. I talked to them inside and they tell me that they got three feet of water. They got very little warning. All they could do was try to find high ground within their house, which meant, Carol, literally sitting on their kitchen counters to stay dry.

As for their dogs, they have two dogs. They have so set their dining table on their dining chairs and they had the dogs on top of that mounted makeshift table just to keep their dogs safe.

Now, again, they're very worried because of this. Take a look. It's raining like I said. We are under a flash flood warning. One to three inches of rain. But that, Carol, can multiply when these bayous that run from north Houston all the way through the city, when that water accumulates and these bayous swell.

Now I talked to these folks. They tell me that it's flood here before. They've never seen it like this, however -- Carol.

COSTELLO: Rosa Flores reporting from Houston this morning. As Rosa said the threat is not over yet. New potentially dangerous

storms could slam flood ravaged areas with more torrential rain.

Jennifer Gray has more on that part of the story from Wimberley, Texas.

Good morning.

JENNIFER GRAY, AMS METEOROLOGIST: Yes, good morning, Carol. We are in Wimberley, Texas, where 11 people are still missing. Three have died. They have recovered those bodies, one adult female, two adult males. We haven't identified them yet, though.

[10:05:05] And we are looking at the Blanco River. This is where it all started. The water that is now -- has lowered significantly came up. It would have been over my head over the weekend and you can see it now still raging. You can see the water coming over that hump. It's actually a concrete bridge. So it does give you perspective as to how high the water still is.

Look at all the debris. All the trees just littering the banks. These were once cabins. We're at Seven Acres Resort. And they had over 20 cabins, close to 30. And a lot of these on the front row have been completely swept away.

And you can see this green building right here. This was under water. You can see the water mark on the very, very top of that building. And then if you follow me over here, this is another one of the cabins. These are up high. More than 40 feet above where the river sits. And you can see the water marks. So water in these cabins were chest deep.

They had 450 people here the night of the flood. They evacuated all of them. Everyone is OK. That's the good news. They couldn't see anything. It happened at night. All they could do was hear the water. They heard it getting closer and closer and closer. They heard trees snapping, limbs breaking. They heard cabins going away. And that's what they were listening to, to know they needed to seek higher ground. Luckily they did. Everyone is OK.

Carol, the big concern now is more rain. We are expected to see more rain later Thursday, Friday, as well as through the weekend. Luckily around this area less than half -- less than an inch is expected. But as we all know, we can get caught in those heavy downpours and the water can rise again. So the main concern is more flooding across the whole country of Texas and so everyone is on high alert here to make sure that they get to higher ground if need be in the coming days -- Carol.

COSTELLO: All right. Jennifer Gray reporting live from Wimberley, Texas.

You see the rain is falling there. It's raining in much of Texas maybe including San Marcos, Texas, and that's one of the hardest hit communities.

Kristi Wyatt is the director of communications for the city of San Marcos. She joins me now live.

Christie, bring me up to date. Is it raining there now?

KRISTI WYATT, COMMUNICATIONS DIRECTOR, CITY OF SAN MARCOS: The clouds have come in, it's dark outside, and we're taking a look at it and kind of starting to plan to make sure that we're ready in case we get more bad weather coming in this way.

COSTELLO: Our latest reporting says three people are still missing in San Marcos. Can you give us an update?

WYATT: OK. Our latest report -- I just stepped out of a briefing and we actually have 11 people that are missing. And we are trying to recover those people. We're presuming that they have lost their lives. We have put out their photos and their names to try to get some attention and maybe see if we can locate those people. Additionally, we have recovered three bodies here in our area, in our county and our neighboring counties, and we have not been able to identify those people at this time yet.

But it's just very heartbreaking that we have this loss of life here. We have these people who have been suffering with not only losing their homes and losing everything that's valuable to them but also losing our community members.

COSTELLO: That's just -- so three dead, 11 people still missing. Do you know how those people came to be missing? Were they driving? Were they in their homes?

WYATT: I don't have a good confirmation of that. We do believe that some of those people were in a home, together, celebrating the holidays and they were swept away in the storm water. I don't have information on the other victims but I do have that information on those people and so just a terrible situation where you come together with your family, your friends to honor the people who served our country and celebrate what our country is built on and to lose your life.

But on the flip side, I do have to tell you that the community outpouring has been so grand. I know that people have been waiting for us to open our volunteer centers and our donation centers but it's been a monumental task because we've gotten calls from all over the country. We've gotten people showing up at our EOC, people showing up at our city facilities wanting to give and trying to organize that is a massive effort.

And so we're working as quickly as we can. We just want to thank those people of those community and church organizations who've been able to step up and go ahead and do that for us in some perspective because that lets us be able to focus on the recovery effort here.

COSTELLO: All right. Kristi Wyatt, thank you so much for joining me this morning. I know it's been -- I know it's a busy day for you. Thank you so much.

Still to come in the NEWSROOM, we'll take you to the front lines as Iraqi fighters launch a major offensive to retake key territory from ISIS.

[10:10:04]

(COMMERCIAL BREAK)

COSTELLO: Right now a fierce fight is under way to try to drive out terrorists and take back two key Iraqi provinces.

This new video shows Iraqi troops firing weapons towards ISIS targets in Ramadi, the capital of Anbar province. Iraqi forces have now entered the southernmost edge of the city. That's according to two Sunni sheikhs. Troops face enormous challenges, though. A source telling CNN 30 Iraqi soldiers were killed after a triple suicide attack near Fallujah.

CNN's senior international correspondent Arwa Damon is in Baghdad. She got a firsthand look at how troops are trying to maintain their positions.

Tell us more -- Arwa.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hi, Carol. Well, key in all of this, with Ramadi being the main goal in this entire massive operation, is cutting off the ISIS logistical supply routes to prevent them from being able to regroup and move their weapons and fighters around the battlefield. So the area that we were in, the forces that were there, that is exactly what they were trying to do.

(BEGIN VIDEOTAPE)

DAMON (voice-over): It's a mass mobilization across multiple fronts. In two key Iraqi provinces. Fueled by the fall of Ramadi in Anbar which borders Salahuddin, where we are. This territory was recaptured just hours before we arrived.

[10:15:10] (On camera): Khadar (ph) was just saying that when the force moved in here earlier in the day there were a number of IEDs that ISIS fighters had buried right along this route. A number of them exploding on some of these units and there were at least 11 casualties.

(Voice-over): ISIS used to move with ease through these lands transporting fighters and weapons between areas they control.

(On camera): Anbar Province is in that direction and their main aim here right now is to make sure that they hold this defensive position to keep ISIS from recapturing this territory as other elements of their unit advance further that way.

(Voice-over): Hadi al-Amiri commands the Badr Brigade, within the predominantly Shia paramilitary force that is leading this joint operation with Iraq's Security Forces.

"We cut off their supply routes into Anbar and we surrounded the enemy in this area," al-Amiri explains. It is a critical line of defense between Salahuddin and Anbar that also runs along a vital south to north oil pipeline. Throughout the battlefield is a patchwork of ISIS strongholds and logistical lines.

We see but are not allowed to film or speak to Iranian advisers. Iraq's powerful neighbor a much more reliable ally in the war against ISIS.

"Anyone who depends on American support is depending on a shadow," al- Amiri says. "The dependence by the central government on the United States is one of the reasons we lost Ramadi."

That won't happen here, all of the men vow. More forces and reinforcements arrive. Through a scope, one fighter can point two suspected ISIS vehicles in the distance. Along the berm, others watch and wait, preparing for ISIS to strike back.

(END VIDEOTAPE)

DAMON: And, Carol, holding those frontlines is very difficult to say the least, given the type of tactics that ISIS does employ especially what you are mentioning earlier there with that triple suicide bombing that took out at least 30 Iraqi soldiers and suicide bombings are the ideal tactic that ISIS does use in all of this. That is exactly how they manage to capture Ramadi.

COSTELLO: All right. Arwa Damon reporting live from Baghdad. Thanks so much.

In the meantime, the White House appears to be steering clear of those controversial comments made by Defense Secretary Ash Carter that Iraqi troops lacked the will to fight when Ramadi fell.

(BEGIN VIDEO CLIP)

JEN PSAKI, WHITE HOUSE COMMUNICATIONS DIRECTOR: I think we've seen some issues in the past. We need to address those. I'd remind you also and I think we talked about this a year ago that Prime Minister Abadi came in, in a situation where there was a lot of division, a lot of work needed to be done to better unite the forces, to better bring them together, to equip them. He's done that work. His security forces have done that work. It takes some time.

(END VIDEO CLIP)

COSTELLO: Psaki went on to say that the United States needs to adapt its strategy. So let's bring in CNN intelligence and security analyst, Bob Baer. He's also a former CIA operative.

Good morning.

ROBERT BAER, CNN INTELLIGENCE AND SECURITY ANALYST: Good morning, Carol.

COSTELLO: OK. So how should the United States switch things up then?

BAER: Well, you know, frankly, and the White House isn't going to say this, but we are really in a bind in Iraq. What we have to look at is offensive against Ramadi is in effect a Shia jihad. Sistani last year called for a jihad against ISIS. The Iraqi government failed in Ramadi. Abandoned the city, if you like. And now you have the Shia militias which are very, very -- they are believers. Their sectarian are going into an area that's 100 percent Sunni.

This reverberations -- if they manage to take Ramadi and march up the Euphrates one town after another, the reverberations across the Middle East will be very dire. I can guarantee you that. So what the Washington did -- is trying to do is walk a fine line here between -- you know, between two jihads, the Sunni one and the Shia one, and it's not easy to do and Iran has stepped in to the void and is trying to control the Shia. And is leading this in many ways either by arms or even having advisers on the ground, and you know we are playing a very much minor role in that country now. And I'm not sure what we can do.

COSTELLO: So this will perhaps turn into a regional sectarian war?

BAER: You know, I just got back from Europe and talked to a lot of people that deal with Saudi Arabia. And they are worried about its future because of the war in Yemen, which is another sectarian war and a war in Iraq. What they're -- what the Saudis on the street are saying, this royal family hasn't done enough to protect Sunnis.

[10:20:09] They've allowed, for instance, Ramadi to be under siege by a Shia jihad and the stability of the country is in question. I don't know that it's that bad. I don't keep that good touch with Saudi Arabia but it's something we should consider as the seesaw battle continues in the Middle East, what effect it will have on the gulf states, and if it does bring any of those states down, the consequences, I can't even imagine what they would be.

COSTELLO: All right. Bob Baer, thanks for your insight. I appreciate it.

Still to come in the NEWSROOM, investigators made one arrest for torture and murder of a family in a D.C. mansion. Following the money could lead to other suspects. That's next.

(COMMERCIAL BREAK)

COSTELLO: Checking some top stories at 24 minutes past the hour. Pope Francis speaking out today about the importance of marriage between a man and a woman. The Pope says that it is, quote. "An alliance for life, cannot be improvised and is not made in a day." His comments come just one day after his top deputy called Ireland's vote to legalize gay marriage a defeat for humanity.

Police in North Dakota say a 21-year-old airman is behind a deadly shooting at a Wal-Mart that killed three people. Investigators say Marcel Willis opened fire outside the store killing two employees before heading inside and taking his own life. Willis was stationed at an air force base in Grand Forks. Police say he had no connection to any of his victims.

Follow the money trail. That's what investigators are doing as they try to determine if their chief suspect had help in the brutal killings of two parents, their young son and the family's housekeeper. CNN justice correspondent Pamela Brown has more for you.

(BEGIN VIDEOTAPE)

[10:25:14] PAMELA BROWN, CNN CORRESPONDENT (voice-over): CNN has learned two of the five people with Daron Wint cashed money orders for $2500 each, money believed by investigators to be from the $40,000 dropped off at the Savopoulos family home while they were held hostage, according to a law enforcement official.

HARRY HOUCK, CNN LAW ENFORCEMENT ANALYST: You release them. I mean, you've got -- you've identified all their information. We know where they work. We know their cell phone numbers. We know where they live, we know where the family is. So the police officers probably felt pretty confident that they can release them. All right. And let them know, listen, you know, you're still under investigation and there might be some charges to come in this case.

BROWN: This as we're learning police continue to investigate an individual described in police records as an assistant and driver of Savvas Savopoulos, who allegedly helped facilitate the money dropped off at the family home. According to court documents, the assistant changed his story about when his boss contacted him to pick up the $40,000. Revised details about the car he left the money in at the mansion, and admitted he lied by not initially telling police the cash was in a red bag.

HOUCK: There's no reason for somebody like that to lie. The detectives are taking a very close look at him to find out whether that money was dropped off or not, going through all his records to see if anyway he was somehow connected to Wint at all in this case.

BROWN: So far no one else besides Daron Wint has been named as a suspect in the case. CNN has learned after the murders in Washington, D.C., Wint allegedly took a bus to New York to stay with his girlfriend. Once he was publicly named as a suspect, Wint paid $1,000 to hire an Uber car service to drive him back to D.C., according to a law enforcement source.

Pamela Brown, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And still to come in the NEWSROOM, racketeering, money laundering and kickbacks. But this isn't the mafia. It's soccer.

(COMMERCIAL BREAK)